The Macau SAR Executive Council advanced a new law proposal on March 31 to regulate junket operators, their sub-agents, managing entities and their relation to gaming concessionaires1. The full text, named "Regulations for operating games of chance in casinos," was published by the legislative body on April 131. It was introduced alongside the amendment to Macau's general gaming law, which is under Legislative Assembly committee evaluation1.
Under the draft, managing entities responsible for properties where third-party run casinos operate, known as satellite casinos, would only be allowed to establish business contracts with one gaming concessionaire1. Junkets would face the same restriction, while concessionaires would be allowed to work with more than one promoter, with the maximum number per concessionaire set annually by the Gaming Inspection and Co-ordination Bureau (DICJ) until November 302. Any contract between a gaming operator and a concessionaire would have to be submitted to the Macau SAR Chief Executive for approval1.
The bill sets licensing conditions for junkets: social capital of not less than MOP10 million (US$1.2 million), more than 50 percent of capital held by a Macau resident over 21 years of age, limited liability company status in Macau, no outstanding gambling-related debts and proof of adequate financial capacity2. Licenses would be renewed annually and valid until December 312. Sub-agents must be Macau residents over 21, prove suitability and hold a declaration from the junket they intend to work with2.
| Provision | Detail |
|---|---|
| Fines for managing entities | MOP100,000 to MOP1.5 million1 |
| Administrative fines, operators, junkets, sub-agents | MOP100,000 to MOP1.5 million2 |
| Illegal acceptance of deposits | Two to five years in prison1 |
| Suspension of a gaming area | One month to two years2 |
| Prohibition on a junket or sub-agent operating | One month to two years2 |
Managing entities would be barred from managing casino financial activities and could only charge management expenses to the concessionaire, with any sharing of gaming income prohibited1. They would also hold criminal responsibility when a concessionaire, junket promoter or sub-agent illegally accepts cash or other deposits "under this name"1. Junkets are prohibited from sharing casino income with the concessionaire, exploiting a gaming area in exclusivity, cooperating with third parties through gaming revenue commission agreements, accepting deposits from players, or working with collaborators not authorized by the DICJ2.
"On March 31 the Macau SAR Executive Council advanced a new law proposal to regulate junket operators, their sub-agents, managing entities and their relation to gaming concessionaires."
Macau had 18 operational satellite casinos among 40 casinos in the territory at the time, with 14 running under the license of SJM Holdings Ltd and the other four linked to Galaxy Entertainment Group and Melco Resorts and Entertainment Ltd1. The number of licensed VIP gaming promoters fell to 46 in 2022, the lowest since the licensing regime began about 20 years ago, and only 37 of the 46 licensed in January were still operating, according to DICJ Director Adriano Ho2.
What it means for players
The changes target the companies behind VIP rooms and junkets in Macau and the third-party operators of satellite casinos, not the rules of play. For players, the practical effect is fewer counterparties: a junket or satellite venue would be tied to a single concessionaire, and junkets would be barred from accepting player deposits, which the draft makes a criminal offense carrying two to five years in prison1. Sub-agents, the people who introduce players, would be licensed and limited in number for the first time2. The rules inside Macau casinos and general entry conditions are not changed by this bill. The wider legal position is set out in the guide to gambling laws in Asia.
What happens next
The bill was published by the legislative body on April 13 and was introduced in tandem with the general gaming law amendment under Legislative Assembly committee evaluation1. Under the draft, after an initial three-year transition period, casino properties owned by independent investors would be either permanently closed or acquired by the six prospective concessionaires1.
Separately, Macao Daily News reported on March 24 that seven satellite casinos planned to stop operations by mid-year, four of them linked to Chan Meng Kam's Golden Dragon Group1. Emperor Entertainment Hotel Limited announced the casino at its Grand Emperor Hotel would cease operations because it would not renew its service agreement with SJM, set to expire on June 261.
